Certification Election

1. What is Certification Election?

Certification election is a process of determining through secret ballot the sole and
exclusive bargaining agent (SEBA) of all the employees in an appropriate bargaining
unit for the purpose of collective bargaining.

2. Where does a union file a petition for certification election (PCE)?

A PCE is filed at the Regional Office which issued the certificate of petitioning union’s
certificate of registration/certificate of creation of chartered local.

3. What are the requirements in filing a PCE?

Among the important requirements are the following:

a) A statement indicating any of the following:


That the bargaining unit is unorganized or that there is no registered CBA
covering the employees in the bargaining unit;
If there exists a duly registered CBA, that the petition is filed within the
sixty-day freedom period of such agreement;
If another union had been previously recognized voluntarily or certified in a
valid certification, consent or run-off election, that the petition is filed
outside the one-year period from entry of voluntary recognition or
conduct of certification or run-off election and no appeal is pending
thereon.

b) In an organized establishment, the signature of at least twenty-five (25%) percent of

all employees in the appropriate bargaining unit shall be attached to the petition at the
time of its filing (Section 4, Rule VIII, of the Department Order No. 40-03).

4. What happens after receipt of the PCE?

The petition will be raffled to the Med-Arbiter for preliminary conference to determine,
among others, the bargaining unit to be represented, the contending unions, and the
possibility of consent election.

5. What happens upon approval of the conduct of certification election by the

Mediator-Arbiter?

The PCE will be endorsed to an election officer for the conduct of pre-election
conference wherein the date, time and place of election will be identified, the list of
challenged and eligible voters will be made, as well as the number and location of
polling places.

6.May a PCE be denied?

Yes, a PCE may be denied if:

a) it was filed before or after the freedom period of a registered CBA;

b) the petitioner union is not listed in the DOLE Registry of legitimate labor organization;
or

c) the legal personality of the petitioner-union has been revoked or cancelled with
finality.

7. Who will conduct the CE?

The DOLE Regional Office through the election officer conducts the certification
election.

8.How is the SEBA determined?

The union that garners majority of the valid votes cast in a valid certification election
shall be certified as the SEBA.

9. May election protest be entertained?

Yes, but protest should have been first recorded in the minutes of the election
proceedings.

10.What happens if the petitioner union fails to garner the majority of the valid
votes cast?

There will be no SEBA, but another PCE may be filed one year thereafter.

11. What are the requisites for certification election in organized establishments?

Certification election in organized establishments requires that:

a) a petition questioning the majority status of the incumbent bargaining agent is filed
before the DOLE within the 60-day freedom period;

b) such petition is verified; and

c) the petition is supported by the written consent of at least twenty-five percent (25%)
of all employees in the bargaining unit.
12. What is the requirement for certification election in unorganized
establishments?

Certification election in unorganized establishments shall “automatically” be conducted

upon the filing of a petition for certification election by an independent union or a
federation in behalf of the chartered local or the local/chapter itself.

13. May an employer file a PCE?

Yes, the employer may file a PCE if it is requested to bargain collectively.

14. May an employer extend voluntary recognition to a legitimate labor

organization without filing a PCE?

Yes, management may voluntarily recognize a union if there is no other union in the
company and if other requirements are complied with (Sec. 2, Rule 7 of D.O. 40-03).

15. What is the role of employer in certification election?

The employer shall not be considered a party to a petition for certification election,
whether it is filed by an employer or a legitimate labor organization, and shall have no
right to oppose it. Its participation shall be limited only to being notified or informed of
petition for certification election and submitting the certified list of employees or where
necessary, the payrolls (Employer as Bystander Rule).

Collective Bargaining
1. What is Collective Bargaining?

It is a process where the parties agree to fix and administer terms and conditions of
employment which must not be below the minimum standards fixed by law, and set a
mechanism for resolving their grievances.

2.What is Collective Bargaining Agreement (CBA)?

It is a contract executed upon request of either the employer or the exclusive bargaining
representative of the employees incorporating the agreement reached after negotiations
with respect to wages, hours of work and all other terms and conditions of employment,
including proposals for adjusting any grievances or questions under such agreement.

3.Is the ratification of the CBA by the majority of all the workers in the bargaining
unit mandatory?
Yes. The agreement negotiated by the employees’ bargaining agent should be ratified
or approved by the majority of all the workers in the bargaining unit.

4.Is there any exception to the requirement of mandatory ratification by the

majority of all the workers in the bargaining unit?

Yes. Ratification of the CBA by the employees in the bargaining unit is not needed when
the CBA is a product of an arbitral award by appropriate government authority or by a
voluntary arbitrator.

5.What constitutes CBA registration?

It is a process of determining whether the application for registration of a Collective

Bargaining Agreement complies with the Rules on CBA registration specifically Rule
XVII of the Department Order No. 40-03 or the Rules amending the Implementing Rules
of Book V of the Labor Code of the Philippines.

6.What is the effect of the CBA registration?

The registration of the CBA will bar a certification election except within the last sixty
days (freedom period) before the expiration of the five-year CBA.

7.What is the lifetime of a CBA?

With respect to representation aspect, the CBA lasts for 5 years. However, not later
than 3 years after the execution of the CBA, the economic provisions shall be
renegotiated.

8.What is the freedom period?

It refers to the last sixty days immediately preceding the expiration of the five-year CBA.
A petition for certification election may be filed during the freedom period.

9.Where to file the application for CBA registration?

The application for CBA registration shall be filed at the Regional Office that issued the
certificate of registration or certificate of creation of chartered local of the labor union-
party to the agreement.

10.When to file the application for CBA registration?

The application for registration of the CBA shall be filed within thirty (30) days from the
execution of such CBA.

11.What are the requirements for CBA registration?

The following are the requirements for CBA registration (original and two (2) duplicate
copies which must be certified under oath by the representative of the employer and
labor union concerned):

a) The Collective Bargaining Agreement;

b) A statement that the Collective Bargaining Agreement was posted in at least two (2)
conspicuous places in the establishment concerned for at least five (5) days before its
ratification; and

c) A statement that the Collective Bargaining Agreement was ratified by the majority of
the employees in the bargaining unit of the employer concerned.

12.Is registration fee required?

Yes. The certificate of CBA registration shall be issued by the DOLE Regional Office
only upon payment of the prescribed registration fee.

13.How long will it take to process the CBA registration?

The application for CBA registration shall be processed within one day from receipt
thereof.

14.What is the ground for denial of the CBA registration?

Failure of the applicant to complete the requirements for CBA registration but such
denial is without prejudice for the filing of another application for registration.

Labor Management Relations

Article XIII Sec. 3 of the Philippine Constitution on Labor-Management Relations,
at a Glance:

a) Full protection to labor, local and overseas, organized and unorganized;

b) Full employment and equality of employment opportunities for all;

c) Right of all workers to:

self-organization, collective bargaining and negotiations;

 engage in peaceful concerted activities, including the right to strike in accordance
with law;
security of tenure, humane conditions of work and a living wage; and
participate in policy and decision making processes affecting their rights and
benefits as may to provided by law;

d) Promotion of the principle of shared responsibility between workers and employers;

e) Preferential use of voluntary modes in setting disputes, including conciliation.

f) Recognition of the right of labor to its just share in fruits of production; and

g) Right of enterprises to reasonable return of investment and to expansion and growth.

Article 211 of the Labor Code, as amended by R.A. 6715, on the State Policy on
Labor Relations:

a) To promote and emphasize the primacy of free collective bargaining and
negotiations, including voluntary arbitration, mediation and conciliation, as modes of
settling labor or industrial disputes;

b) To promote free trade unionism as an instrument for the enhancement of democracy
and the promotion of social justice and development;

c) To foster the free and voluntary organization of a strong and united labor movement;

d) To promote the enlightenment of workers concerning their rights and obligations as
union members and as employees;

e) To provide an adequate administrative machinery for the expeditious settlement of

labor or industrial disputes;

f) To ensure a stable but dynamic and just industrial peace; and

g) To ensure the participation of workers in decision and policy-making processes

affecting their rights, duties and welfare.

Right to Self-Organization
1.What is Right to self-organization?

It is the right of workers and employees to form, join or assist unions, organizations or
associations for purposes of collective bargaining and negotiation and for mutual aid
and protection. It also refers to the right to engage in peaceful concerted activities or to
participate in policy and decision-making processes affecting their rights and benefits.

2.What is Workers’ Association?

A workers’ association means any group of workers, including ambulant, intermittent,

self-employed, rural workers and those without definite employers, organized for mutual
aid and protection of its members or for any legitimate purpose other than collective
bargaining.

3.Who may join a labor organization or workers’ association?

The following may join a labor organization:

a) all employees employed in commercial, industrial and agricultural enterprises

and in religious, charitable, medical or educational institutions whether
operating for profit or not;
b) government employees in the civil service;
c) supervisory personnel;
d) security personnel; and,
e) aliens with valid working permit provided there are nationals of a country which
grants the same or similar rights to Filipino workers as certified by the
Department of Foreign Affairs (DFA).

4.Is there a required number of workers in an establishment for a union to be

formed?

None, provided that the required 20% membership of the bargaining unit is complied
with.

5.How do labor organizations and workers’ associations become legitimate?

Federation, national union or industry or trade union center or an independent union

and workers’ associations become legitimate upon issuance of the certificate of
registration by the Department of Labor and Employment (DOLE).

6.What are the rights of legitimate labor organizations?

A legitimate labor organization shall have the following rights:

to act as a representative of its members for collective bargaining;

 to be certified as the exclusive representative of all the employees in an
appropriate collective bargaining unit for collective bargaining;
to be furnished by the employer, upon written request, with annual audited
financial statements within 30 calendar days from date of receipt of the
request, or within 60 calendar days before the expiration of the existing CBA,
or during the collective bargaining negotiation;
to own property, real of personal, for the use and benefit of the labor organization
and its members; and
to sue and be sued in its registered name; and (6) to undertake all other activities
to benefit the organization and its members, and other projects not contrary to
law.

7.How are locals/chapters of federation or workers association created?

A duly registered federation or national union may directly create a local/chapter by

issuing a charter certificate indicating the establishment of the local/chapter. a duly
registered workers’ association may also charter any of its braches upon filing of the
documents prescribed in chartering and creation of a local/chapter.

8.When does a local\chapter acquire legal personality?

The local/chapter shall acquire legal personality only for purposes of filing a petition for
certification election from the date the duly registered federation or national union
issued a charter certificate.

The local/chapter shall be entitled to all other rights and privileges of a legitimate labor
organization upon the submission of the following:

charter certificate
the names of the local/chapter’s officers, their addresses, and the principal office
of the local/chapter; and
the chapter constitution and by-laws is the same as that of the federation, this
fact shall be indicated accordingly.
The Genuineness and appropriate execution of the supporting requirement shall be
certified under oath by the secretary or treasurer of the local/chapter and attested to by
its president.

9.When may the Regional or BLR Director Inquire into the financial activities of a
legitimate labor organization?

The regional or BLR Director may inquire into the financial activities of any legitimate
labor organization and examine their books of accounts and other records to determine
whether they are complying with the law and the organization’s constitution and by-laws
upon the filing of a request or complaint for the conduct of an accounts examination by
any member of the labor organization, supported by the written consent of at least
twenty (20%) percent of its total membership ( Art. 274 of the Labor Code, as
amended).

10.What are the grounds for the cancellation of union registration?

The grounds for the cancellation of union registration are:

a) misrepresentation, false statement or fraud in connection with the adoption or

ratification of the constitution and by-laws or amendments thereto, the minutes of
ratification, and the list of members who took part in the ratification;

b) misrepresentation, false statement or fraud in connection with the election of officers,

minutes of election of officers, and the list of voters; and

c) voluntary dissolution of the members. However, at least 2/3 of its general

membership should vote to dissolve the organization in a meeting called for that
purpose and that the application to cancel the registration is submitted by the board of
the organization. It shall be attested to by the president.

11.Who may file an intra/inter union complaint or petition?

Any legitimate labor organization or its concerned member(s) may file a complaint or
petition involving intra/inter-union disputes or issues. When the issue involves the entire
membership of the labor organization, the complaint or petition shall be supported by at
least thirty percent (30%) of its members.

Single Entry Approach (SEnA)

1. What is the Single Entry Approach (SEnA)?

Single Entry Approach is an administrative approach to provide a speedy, impartial,

inexpensive and accessible settlement procedure for all issues/complaints arising from
employer-employee relations to prevent them from ripening into full blown disputes.
Under this approach, all labor and employment disputes shall undergo a 30-day
mandatory conciliation-mediation process to effect settlement among the contending
parties.

2. What are the issues subject to SEnA?

All issues arising from labor and employment which may include the following:
a) Termination or suspension of employment issues;

b) Claims for any sum of money, regardless of amount;

c) Intra-union and inter-union issues except petition for certification election, after
exhaustion of administrative remedies;

d) Unfair labor practices;

e) Closures, retrenchments, redundancies, temporary lay-offs;

f) OFW cases;

g) Occupational safety and health standards issues except those involving imminent
danger situation;

h) Issues arising from other labor and related issuances (OLRI)

i) Any other claims arising from employer-employee relationship; and

j) Cases falling under the administrative and quasi-judicial jurisdiction of all DOLE
offices and attached agencies, including NLRC.

3. What issues are not covered by SEnA?

The following issues are not covered by SEnA:

a) Notices of strikes or lockouts, or preventive mediation cases which shall remain with
the National Conciliation and Mediation Board (NCMB);

b) Issues arising from the interpretation or implementation of the collective bargaining

agreement and those arising from interpretation or enforcement of company personnel
policies which should be processed through the Grievance Machinery and voluntary
arbitration; and

c) Issues involving violations of the following permits, licenses or registrations: (Alien

Employment Permit (AEP), PRPA authority or license, Working child permit (WCP) and
violations of Republic Act No.9231 (Anti-Child Labor Law), Registration under
Department Order No. 18-02, POEA issued licenses under the Migrant Workers’ Act, as
amended, Professional license issued by the PRC, TESDA accreditations; and Other
similar permits, licenses or registrations issued by the DOLE or its attached agencies).

4. Who may file a case under the SEnA?

Any aggrieved worker, union, group of workers or the employer may file a request for
assistance.
5. Where to file or request for SEnA?

Request for SEnA can be filed at the Single Entry Assistance Desk (SEAD) in the region
where the employer principally operates. In case of a union or federation representing a
local chapter, the request shall be made at the regional/provincial/ district office where
the union or local chapter is registered.

6. Where to file labor relations disputes?

Labor relations disputes, particularly illegal dismissals with or without claim for
reinstatement, unfair labor practices, strikes and lockouts and claims for damages, shall
be filed with the Labor Arbiter of the NLRC-Regional Arbitration Branch.

7. Does the action to question one’s dismissal prescribe?

Yes. The action prescribes after 4 years from the date of termination.

8. What is the period of prescription for ULP acts?

One year from the time the cause of action accrued.

9. Where to file union representation disputes?

Union representation disputes shall be filed at the DOLE Regional Office.

10. Where to file inter/intra-union disputes and cancellation of union registration?

Inter-union and intra-union disputes shall be filed at the DOLE Regional Office or
Bureau of Labor Relations.

11. Where to file disputes involving interpretation and implementation of CBA or

company personnel policies?

Disputes involving interpretation and implementation of CBA or company personnel

policies that are not resolved by the Grievance Machinery shall be filed at the NCMB
Regional Branches.

12. Who has the jurisdiction to determine the legality or illegality of

strike/lockout?

The Labor Arbiter at the NLRC-Regional Arbitration Branch determines questions

involving the legality or illegality of a strike/lockout upon the filing of a proper complaint
and after due hearing.

When the issue is of national interest, the Secretary of Labor and Employment may
assume jurisdiction or certify the dispute to the NLRC for compulsory arbitration
(International Pharmaceuticals, Inc. vs. Secretary of Labor, and Associated Labor
Union, 205 SCRA 59, January 9, 1992).

13. May a voluntary arbitrator determine the legality of a strike?

Yes. If the issue is voluntarily and jointly submitted by the parties to voluntary
arbitration, the question may be resolved by the voluntary arbitrator or panel of
voluntary arbitrators.

Strikes and Lockout

1. What is alternative dispute resolution (ADR)?

Alternative Dispute Resolution means any process or procedure used to resolve a labor
dispute through conciliation, mediation, voluntary arbitration, or plant-level bipartite
mechanisms, such as labor-management cooperation (LMC) and grievance machinery.

2. What is conciliation-mediation?

Conciliation-mediation is a non-litigious, non-adversarial, less expensive and

expeditious mechanism in assisting the parties towards voluntarily reaching their own
mutually acceptable settlement to the labor dispute. Under this informal set-up, the
parties arrive at an amicable settlement without going through legal procedures.

3. Who can avail of conciliation and mediation services?

Any party to a labor dispute, whether an individual, union or management, can avail of
the conciliation mediation services at the National Conciliation and Mediation Board
(NCMB) and its Regional Branches thru a request for assistance, notice of preventive
mediation or notice of strike/lockout.

4. What are the issues that may be the subject of preventive mediation?

A preventive mediation may be filed by an individual, union or management on any

issue arising from violation of the right to self-organization, including issues for notice of
strike or lockout, to avoid the occurrence of actual labor disputes.

5. Suppose the issue on preventive mediation is not settled, what action may be
taken?

The individual, union or management may file a notice of strike/lockout.

6. Who can file a notice of strike?

Unions that are certified as the sole and exclusive bargaining agent (SEBA) may file a
notice of strike at the NCMB Regional Branch. In the absence of a SEBA, a legitimate
labor organization may file but only on grounds of ULPs.

7. What are the valid issues/grounds that may be the subject of a notice of
strike/lockout?

A notice of strike or lockout may be filed on grounds of unfair labor practice (ULP) or
deadlock in collective bargaining (CB).

8. May the union or management bring the case to voluntary arbitration?

Yes. Upon agreement, the parties may bring the matter for resolution before an
accredited voluntary arbitrator of their own choice, in which case the Notice is deemed
automatically withdrawn and dropped from the dockets.

9. What happens in case no settlement is reached?

The union/management may go on strike/lockout provided the following are complied

with:

a) A request to the concerned NCMB regional branch to observe the conduct of the
strike/lockout vote;

b) Actual conduct of strike/lockout vote must be approved through secret ballot by the
majority of the union members/board of directors of the corporation or association or of
the partners in a partnership;

c) The result of the strike or lockout VOTE shall be submitted to the concerned NCMB-
Regional Branch;

d) The union must wait for the lapse of the 7-day mandatory strike ban period from the
submission of the strike/lockout vote results to give NCMB last ditch effort to effect
settlement.

10. What are the periods to be observed before going on strike?

If the ground of the notice of strike is CB deadlock, the cooling-off period is 30 days. If
ULP, 15 days. During these periods, the NCMB shall exert all efforts at the mediation
and conciliation to effect voluntary settlement. If Union Busting, the cooling-off period is
dispensed with but the mandatory 7-day Strike Ban period must be complied with.

11. When may a strike or lockout be declared illegal?

A strike or lockout may be declared illegal if any of the requirements for a valid strike or
lockout is not complied with. It may also be declared illegal if it is based on non-
strikeable issues or if the issues involved are already the subject of arbitration. During a
strike or lockout, when either of the parties commits prohibited acts or practices, the
strike or lockout may be declared illegal.

12. Who has jurisdiction to determine the legality of strike or lockout?

In general, the Labor Arbiter in the appropriate Arbitration Branch of the NLRC has the
power to determine questions involving the legality or illegality of a strike or lockout
upon the filing of a proper complaint and after due hearing.

Where the matter of legality or illegality of a strike is raised in the dispute over which the
Secretary assumed jurisdiction or in compulsory arbitration, the same may be resolved
by the Secretary or the Commission, respectively. (IPI vs. Sec. of Labor and Associated
Labor Unions, G.R. No. 92981-83, January 9, 1992.)

13. Is conciliation-mediation still possible during actual strike or actual lockout?

Yes. Conciliation-mediation can still continue even during an actual strike or lockout to
exhaust all possible remedies and explore solutions mutually acceptable to both parties
in resolving the labor dispute.

14. What may the union do if the ground for notice of strike is ULP that involves
dismissal of union officers?

In case of dismissal of union officers, the 15-day cooling-off period shall not apply and
the union may declare a strike after observing the 7-day mandatory strike ban period
which starts after submission of the strike vote results.

15. What may happen if the dispute is considered to be imbued with national
interest?

The Secretary of Labor and Employment may assume jurisdiction over the dispute or
certify it to the NLRC for compulsory arbitration.

16. Is conciliation-mediation still possible even if the dispute has already been
assumed or certified?

Yes. The duty to bargain collectively continues until all issues involved in the dispute
have been resolved and at any point during the pendency of the case at the Office of
the Secretary or at the NLRC, the parties can still submit the dispute to voluntary
arbitration.

17. What is the effect of assumption of jurisdiction or certification for compulsory

arbitration?
The strike is enjoined and the striking workers after due notice are ordered to return to
work and the management to accept them while the Secretary of Labor or the NLRC
resolves the dispute.

18. What is the effect if the strikers refuse to obey the assumption/certification
order?

The strike becomes a prohibited activity and the strike becomes illegal. The union
officers or members will be deemed dismissed from employment.

19. Can the employer file a petition to declare the strike illegal?

Yes. An employer may file a petition to declare the strike illegal at the NLRC-RAB where
the employer is located.

20. What is the consequence of an illegal strike?

When the strike is held illegal, only the union officers who knowingly participated will be
considered to have lost their employment status. The union members who knowingly
participated in the commission of illegal acts during the strike may be held liable.

21. What is a grievance?

A grievance is any question by either the employer or the union regarding the
interpretation or implementation of the collective bargaining agreement or interpretation
or implementation of company personnel policies or interpretation or implementation of
the productivity incentive programs or wage distortion issues or any claim by either
party that the other party is in violation of any provision of the CBA or company
personnel policies.

22. What are the sources of a grievance?

a. Contract (Collective Bargaining Agreement)

b. Company Personnel Policies and Company Rules and Regulations

c. Company Productivity Incentive Programs

d. Law

e. Past practice

23. What are the types of grievances?

a. Rights disputes – pertain to any violations arising from rights established under
collective agreements, laws, rules and regulations and customary practices.
b. Interests disputes – are often referred to as bargaining deadlock issues which may
also be submitted to voluntary arbitration upon agreement of the parties.

c. Discipline cases – refer to violators of the usual norms or personnel conduct or

behaviour of employees.

24. What are the grounds for a grievance to exist?

a. There is a violation of the CBA provisions. (It arises out of interpretation or

implementation of CBA)

b. A worker has been treated unfairly by some decision or policy of the company. (It
involves a disciplinary action of management)

c. There is violation of law or health and safety regulation.

d. There is violation of a past practice.

e. There is a violation of employer responsibility.

f. Wage distortion issues.

g. Issues arising from the interpretation or implementation of the productivity incentive

programs.

25. Who can file/initiate a Grievance?

a. Aggrieved (individual) employee

b. Group of employees

c. The Union

d. Management or Employer

26. How is a grievance resolved?

The grievance is resolved through the grievance machinery or committee as provided

for in the CBA. The procedure may vary from CBA to CBA, but the ideal procedure shall
be as follows:

a) An employee shall present the grievance or complaint orally or in writing to the shop
steward;

b) If the grievance is valid, the shop steward shall immediately bring the complaint to the
employee’s immediate supervisor;
c) If no settlement is reached, the grievance shall be referred to the grievance
committee which shall have ten (10) days to decide the case. (Rule 19, Sec. 2. D.O. 40-
03)

27. What happens if a grievance is not resolved?

The unresolved issue/s in the grievance shall be submitted to voluntary arbitration.

28. What is Voluntary Arbitration?

Voluntary Arbitration is a mode of settling labor-management dispute by which the

parties select a competent, trained and impartial person who decides on the merits of
the case and whose decision is final, executory and binding. It is the terminal step after
the parties have exhausted their grievance machineries.

29. Who is a voluntary arbitrator?

Any person who has been accredited by the Board as such, or any person named or
designated in the collective bargaining agreement by the parties as their voluntary
arbitrator, or one chosen by the parties with or without the assistance of the Board,
pursuant to a selection procedure agreed upon in the CBA or one appointed by the
Board in case either of the parties to the CBA refuses to submit to voluntary arbitration.
The term includes panel of voluntary arbitrators.

30. What are the kinds of a voluntary arbitrator?

a. Permanent Arbitrator – the voluntary arbitrator specifically named or designated in

the collective bargaining agreement by the parties as their voluntary arbitrator.

b. Ad-hoc-arbitrator – the voluntary arbitrator chosen by the parties in accordance with

the established procedures in the CBA or the one appointed by the Board in case there
is failure in the selection or in case either of the parties to the CBA refuses to submit to
voluntary arbitration.

31. What are the disputes/issues that may be submitted to voluntary arbitration?

a. All unresolved grievances arising from the interpretation or implementation of the

collective bargaining agreement. (Art. 261, Labor Code)

b. All unresolved grievances arising from the implementation or enforcement of

company personnel policies. (Art. 261, LC)

c. All wage distortion issues arising from the application of any wage orders in
organized establishments. (Art. 124, LC)
d. All unresolved grievances arising from the interpretation and implementation of the
productivity incentive programs RA 6971.

e. All other labor disputes including unfair labor practices. (Art. 262, LC)

f. Bargaining deadlocks (Art. 262,LC)

g. Assumed or certified “national interest cases” before or any stage of the compulsory
arbitration process (Art. 263[h], LC)

h. Illegal dismissal cases under Policy Instruction No. 56 dated April 6, 1993.

32. How does a voluntary Arbitrator or panel of Voluntary Arbitrators acquire

jurisdiction over a case?

Pursuant to DO 40-03 and Revised Procedural Guidelines on VA, a Voluntary Arbitrator

or panel of Voluntary Arbitrators acquire jurisdiction over a specific dispute upon receipt
of the following:

a. submission agreement signed by the parties;

b. notice to arbitrate signed by a party to a CBA with an agreement to arbitrate; or

c. appointment/designation as VA by the National Conciliation and Mediation Board

(NCMB) in either of the following circumstances:

In the event the parties fail to select an arbitrator; or

In the event that: a) a NTA is served; b) the CBA does not name in advance an
arbitrator; and c) the other party upon whom the notice is served does not reply
favorably within seven (7) days from receipt of such notice.

33. What is a Submission Agreement?

It is written agreement by the parties submitting their case for arbitration containing the
issues, the chosen arbitrator and stipulation to abide by and comply with the resolution,
including the cost of arbitration.

34. What is the remedy of a party who wants to submit to a Voluntary Arbitration
despite the refusal of the other party after exhaustion of grievance procedure but
the grievance remains unresolved?

Submit the case through a procedure called the Notice to Arbitrate.

35. What is a Notice to Arbitrate?

It is a formal demand made by one party to the other for the arbitration of a particular
dispute in case of refusal of one party to a CBA to submit to arbitration.

36. What is the procedure to a Notice to Arbitrate?

1. The Notice is served upon the unwilling party, copy furnished the permanent
arbitrator and the NCMB Regional Branch having jurisdiction over the
workplace;
2. Upon receipt of a notice to arbitrate after the lapse of the seventh-day period
within which to respond, the permanent arbitrator/s shall immediately
commence arbitration proceedings.
3. In the absence of a permanent arbitrator in the CBA, the Board/Branch
appoints a voluntary arbitrator who shall immediately commence arbitration
proceedings upon receipt of such appointment.

37. What is the period required of a voluntary arbitrator or panel of voluntary

arbitrators to render an award or decision?

Unless the parties agree otherwise, a Voluntary Arbitrator or panel of voluntary

arbitrators are mandated to render an award or decision within 20 calendar days from
date of submission for decision.

38. May the parties to a case enter into an amicable settlement of their dispute
pending resolution by the arbitrator?

Yes. In the event that the parties finally settle their dispute during the pendency of the
arbitration proceedings, the terms of settlement shall be reduced into writing and shall
be adopted as the DECISION of the arbitrator.

39. What are the advantages of resorting to voluntary arbitration in the resolution
of a dispute?

a. Speedy

b. Fair

c. Finality of decisions

d. Economical for both in terms of time, money and resources

e. Alternative to Industrial Action

f. Non-litigious, non-adversarial, non-technical

g. Arbitrable issues are not strikeable as mandated by law

40. What is labor-management cooperation?

Labor-management cooperation is a state of relations where labor and management

work hand in hand to accomplish certain goals using mutually acceptable means. It
provides schemes of workers’ participation in decision making process through
information sharing, discussion, consultation and negotiations.

41. Is there a need for labor-management cooperation?

Yes, because labor and management are social partners sharing a common interest in
the success and growth of the enterprise and the economy to promote workers’
participation in decision-making processes, create a labor relations climate conducive to
productivity improvement, improve the quality of working life and achieve and sustain
economic growth.

42. What are the mechanisms to promote labor-management cooperation?

The following are the mechanisms:

a. direct participation mechanisms through small group activities like quality control
circles or productivity improvement circles;

b. indirect participation mechanisms through joint consultative bodies like labor-

management councils or committees;

combination of direct and indirect participation mechanisms like joint bodies and small
group activities.

Termination of Employment
1. What is the right to security of tenure?

The right to security of tenure means that a regular employee shall remain employed
unless his or her services are terminated for just or authorized cause and after
observance of procedural due process.

2. May an employer dismiss an employee? What are the grounds?

Yes. An employer may dismiss an employee on the following just causes:

a) serious misconduct;

b) willful disobedience;

c) gross and habitual neglect of duty;

d) fraud or breach of trust;

e) commission of a crime or offense against the employer, his family or representative;

f) other similar causes.

3. Are there other grounds for terminating an employment? What are they?

Yes. The other grounds are authorized causes:

a) installation of labor-saving devices;

b) redundancy;

c) retrenchment to prevent losses;

d) closure and cessation of business; and

e) disease / illness.

4. Before terminating the services of an employee, what procedure should the

employer observe?

An employer shall observe procedural due process before terminating one’s

employment.

5. What are the components of procedural due process?

A. In a termination for just cause, due process involves the two-notice rule:

a) A notice of intent to dismiss specifying the ground for termination, and giving said
employee reasonable opportunity within which to explain his or her side;

b) A hearing or conference where the employee is given opportunity to respond to the
charge, present evidence or rebut the evidence presented against him or her;

c) A notice of dismissal indicating that upon due consideration of all the circumstances,
grounds have been established to justify termination.

B. In a termination for an authorized cause, due process means a written notice of

dismissal to the employee specifying the grounds at least 30 days before the date of
termination. A copy of the notice shall also be furnished the Regional Office of the
Department of Labor and Employment (DOLE) where the employer is located.

6. What is the sanction if the employer failed to observe procedural due process
in cases of legal and authorized termination?
In cases of termination for just causes, the employee is entitled to payment of indemnity
or nominal damages in a sum of not more than 30,000 pesos (Agabon vs. NLRC, 442
SCRA 573); in case of termination for authorized causes, 50,000 pesos (Jaka Food
Processing vs. Darwin Pacot, 454 SCRA 119).

7. May an employee question the legality of his or her dismissal?

Yes. The legality of a dismissal may be questioned before the Labor Arbiter of a
Regional Arbitration Branch of the National Labor Relations Commission (NLRC),
through a complaint for illegal dismissal. In establishments with a collective bargaining
agreement (CBA), the dismissal may be questioned through the grievance machinery
established under the CBA. If the complaint is not resolved at this level, it may be
submitted to voluntary arbitration.

8. In cases of illegal dismissal, who has the duty of proving that the dismissal is
valid?

The employer.

9. Suppose the employer denies dismissing the employee, who has the duty to
prove that the dismissal is without valid cause?

The employee must elaborate, support or substantiate his or her complaint that he or
she was dismissed without valid cause (Ledesma, Jr. vs. NLRC, 537 SCRA 358,
October 19, 2007).

10. On what grounds may an employee question his or her dismissal?

An employee may question his or her dismissal based on substantive or procedural

grounds.

The substantive aspect pertains to the absence of a just or authorized cause supporting
the dismissal.

The procedural aspect refers to the failure of the employer to give the employee the
opportunity to explain his or her side.

11. What are the rights afforded to an unjustly dismissed employee?

An employee who is dismissed without just cause is entitled to any or all of the
following:

a) reinstatement without loss of seniority rights;

b) in lieu of reinstatement, an employee may be given separation pay of one month pay
for every year of service (Golden Ace Builders, et. al vs. Jose Talde, May 5, 2010, GR
No. 187200);

c) full backwages, inclusive of allowances and other benefits or their monetary

equivalent from the time compensation was withheld up to the time of reinstatement;

d) damages if the dismissal was done in bad faith (Aurora Land Project Corp. vs NLRC,
266 SCRA 48).

12. What is reinstatement?

Reinstatement means restoration of the employee to the position from which he or she
has been unjustly removed.

Reinstatement without loss of seniority rights means that the employee, upon
reinstatement, should be treated in matter involving seniority and continuity of
employment as though he or she had not been dismissed from work.

When a Labor Arbiter rules for an illegal dismissal, reinstatement is immediately

executory even pending appeal by the employer (Article 223 of the Labor Code, as
amended).

13. In what forms may reinstatement pending appeal be effected?

Reinstatement pending appeal may be actual or by payroll, at the option of the

employer.

14. What is meant by full backwages?

Full backwages refer to all compensations, including allowances and other benefits with
monetary equivalent that should have been earned by the employee but was not
collected by him or her because of unjust dismissal. It includes all the amounts he or
she could have earned starting from the date of dismissal up to the time of
reinstatement.

15. What is separation pay?

In termination for authorized causes, separation pay is the amount given to an

employee terminated due to installation of labor-saving devices, redundancy,
retrenchment, closure or cessation of business or incurable disease.

Separation pay may also be granted to an illegally dismissed employee in lieu of

reinstatement.

16. How much is the separation pay?

In cases of installation of labor-saving devices or redundancy, the employee is entitled
to receive the equivalent of one month pay or one month for every year of service,
whichever is higher.

In cases of retrenchment, closure or cessation of business or incurable disease, the

employee is entitled to receive the equivalent of one month pay or one-half month pay
for every year of service, whichever is higher.

In case of separation pay in lieu of reinstatement, the employee is entitled to receive the
equivalent of one month pay for every year of service.

17. Is proof of financial losses necessary to justify retrenchment?

Yes. Proof of actual or imminent financial losses that are substantive in character must
be proven by the employer to justify retrenchment (Lopez Sugar Central vs. NLRC, 189
SCRA 179).

18. Are there other conditions before an employee may be dismissed on the
ground of redundancy?

Yes. It must be shown that there is:

a) Good faith in abolishing redundant position; and

b) Fair and reasonable criteria in selecting employees to be dismissed, such as but not
limited to less preferred status (e.g. temporary employee), efficiency and seniority
(Asian Alcohol Corp. vs. NLRC, 305 SCRA 416);

c) A one-month prior notice is given to the employee and DOLE Regional Office as
prescribed by law.

19. May the services of an employee be terminated due to disease?

Yes. The employer may terminate employment on ground of disease only upon the
issuance of a certification by a competent public health authority that the disease is of
such nature or at such stage that it cannot be cured within a period of six months even
with proper medical treatment.

20. What is constructive dismissal?

Constructive dismissal refers to an involuntary resignation resorted to when continued

employment becomes impossible, unreasonable or unlikely; when there is a demotion in
rank or a diminution in pay; or when a clear discrimination, insensibility or disdain by an
employer becomes unbearable to an employee or an unwarranted transfer or demotion
of a employee, or other unjustified action prejudicial to the employee. The employer has
to prove that such managerial actions do not constitute constructive dismissal (Blue
Dairy Corp. vs. NLRC, 314 SCRA 401)

21. May an employee be placed on floating status?

Yes, provided it is permitted under circumstances for a period of not more than six (6)
months. Beyond this period, floating status becomes constructive dismissal which
entitles the employee to separation pay (Phil. Industrial Security Agency Corp. vs.
Virgilio Dapiton and NLRC, 320 SCRA 124)

22. When an employee resigned voluntarily, is he or she entitled to separation

pay?

No. An employee is not entitled to separation pay when he or she resigns voluntarily,
unless it is a company practice or provided in the CBA (Hanford Philippines Inc. vs.
Shirley Joseph, 454 SCRA 786, March 31, 2005).

23. Are quitclaims valid?

Yes, provided that these are voluntarily signed and the consideration is reasonable and
is not against the law or public policy. (More Maritime Agencies vs. NLRC, 307 SCRA
189)

Quitclaims entered into by union officers and some members do not bind those who did
not sign it (Liana’s Supermarket vs. NLRC, 257 SCRA 186).

Unfair Labor Practice

1. What is unfair labor practice (ULP)?

ULPs are offenses committed by the employer or labor organization which violate the
constitutional right of workers and employees to self-organization. ULP acts are inimical
to the legitimate interests of both labor and management, disrupt industrial peace and
hinder the promotion of healthy and stable labor-management relations. (Art. 248 of the
Labor Code, as amended)

2. What is the nature of ULP?

ULP is not only a violation of the civil rights of both labor and management, but also a
criminal offense against the State. Criminal ULP cases may be filed with the regular
courts. No criminal prosecution may be instituted, however, without a final judgment
from the NLRC that an unfair labor practice was committed.
3. What are some of the ULPs committed by an employer?

ULP by management are as follows:

a) Requiring as a condition of employment that a person or an employee shall not join a

labor organization or shall withdraw from one to which he belongs;

b) Contracting out services or functions being performed by union members when such
will interfere with, restrain, or coerce employees in the exercise of their right to self-
organization;

c) Discrimination as regards to wages, hours of work, and other terms and conditions of
employment in order to encourage or discourage membership in any labor organization;
and

d) Dismissal, discharge, prejudice or discrimination against an employee for having

given or being about to give testimony under the Labor Code. (Art. 248, 249 of the
Labor Code, as amended)

4. What are some ULPs committed by labor organizations?

A labor organization commits ULP by any of the following violations:

a) Restraint or coercion of employees in the exercise of their right to self-organization:

However, the labor organization shall have the right to prescribe its own rules with
respect to the acquisition or retention of membership; and

b) Causing or attempting to cause an employer to discriminate against an employee,

including discrimination against an employee with respect to whom membership in such
organization has been denied or terminating an employee on any ground other than the
usual terms and conditions under which membership or continuation of membership is
made available to other members.

5. What are ULPs committed by both employers and labor organizations?

ULPs by both management and labor organizations are as follows:

a) Interference, restraint, or coercion of employees in the exercise of their right to self-

organization;

b) Violation of a collective bargaining agreement, when circumstances warrant;

c) Initiating, dominating, assisting or otherwise interfering with the formation or

administration of any labor organization, including the giving of financial or other support
to it or its organizers or supporters;
d) Violation of the duty to bargain collectively; and

e) Payment by employer of negotiation or attorney’s fees and acceptance by the union

or its officers or agents as part of the settlement of any issue in collective bargaining or
any other dispute (Art. 248, 249 of the Labor Code, as amended).

PRIMER ON GRIEVANCE MACHINERY AND VOLUNTARY

ARBITRATION

Frequently Asked Questions  

WHAT IS THE PRESENT NATIONAL POLICY ON LABOR DISPUTE SETTLEMENT?

The present national policy on labor dispute settlement is enunciated in the following
instruments:

A. 1987 Constitution

Sec. 3, Article XIII provides:

“The State shall promote the principle of shared responsibility between workers and
employers and the preferential use of voluntary modes in setting disputes, including
conciliation, and shall enforce their mutual compliance therewith to foster industrial
peace.”

B. Labor Code, as amended by Republic Act 6715

Article 211 of the Code provides, among others: (a) “….It is the policy of the State… to
promote and emphasize the primacy of free collective bargaining and negotiations,
including voluntary arbitration, mediation and conciliation, as mode of settling labor or
industrial disputes.”

(b) “ To provide an adequate administrative machinery for the expeditious settlement of

labor or industrial disputes”.

WHAT IS A GRIEVANCE?

A grievance is defined as “any question by either the employer or the union regarding
the interpretation or application of the collective bargaining agreement or company
personnel policies or any claim by either party that the other party is in violation of any
provision of the CBA or company personnel olicies”.

WHAT IS THE GRIEVANCE REFERRED TO IN TITLE VII-A OF THE LABOR CODE?

The grievance referred to in the technical or restricted sense, is a dispute or controversy
between the employer and the collective bargaining agent arising from the interpretation
or implementation of their CBA and/or those arising from the interpretation or
enforcement of company personnel policies, for the adjustment or resolution of which
the parties have agreed to establish a machinery or a series of steps commencing from
the lowest level of decision-making in the management hierarchy (usually between the
shop steward of the employee or

employees aggrieved and the supervisor/foreman/manager which exercises control and

supervision over the grievants or who is responsible for executing the management
action that have given rise to the grievance) and usually terminating at the highest
official of the Company. If such dispute remains unresolved after exhausting the
grievance machinery or procedure, it shall automatically be referred to voluntary
arbitration prescribed in the CBA.

WHAT IS THERE A GRIEVANCE?

In the technical or restricted sense, there is a grievance when a dispute or controversy

arises over the implementation or interpretation of a collective bargaining agreement or
from the implementation or enforcement of company personnel policies, and either the
union or the employer invokes the grievance machinery provision for the adjustment or
resolution of such dispute or controversy.

COULD THERE BE A GRIEVANCE WITHOUT A UNION OR A CBA?

If the term grievance is to be applied in the loose or genetic sense, any dispute or
controversy respecting terms and conditions of employment which an employee or
group of employees may present to the employer can be a grievance, even without a
union or CBA. Under this interpretation, any complaint, question or problem that an
employee or group of employees may wish to take up or discuss with the employer
respecting terms and conditions of employment for the purpose of resolving or satisfying
the same, constitutes a grievance. The expansion of the original and exclusive
jurisdiction of voluntary arbitrators to include questions arising from the Interpretation
and enforcement of company personnel policies has the effect of widening the meaning
and interpretation of a grievance to include a situation where there is no collective
bargaining agent and no CBA.

ARE ALL GRIEVANCE ARISING FROM THE IMPLEMENTATION OR

INTERPRETATION OF THE COLLECTIVE BARGAINING AGREEMENT AND/OR
INTERPRETATION AND ENFORCEMENT OF COMPANY POLICIES COMPULSORY
SUBJECT TP TJE GRIEVANCE MACHINERY?

Yes. This is clear from Article 260 and Art. 261 of the Labor Code, as amended by
Republic Act 6715.
Art. 260 is emphatic on the duty of the parties to a collective bargaining agreement to
establish a machinery for the adjustment and resolution of grievances arising from the
interpretation and enforcement of the CBA and/or company personnel policies, and for
the mandatory use of the said machinery.

Art. 261, on the other hand, directs the NLRC, its Regional Arbitration Branches and the
Regional Directors of the Department of Labor and Employment not to entertain
disputes, grievances or matters under the exclusive and original jurisdiction of the
voluntary arbitrator or panel of voluntary arbitrators and to immediately dispose of and
refer the same t the grievance machinery or voluntary arbitration provided in the
collective bargaining agreement. Moreover, in Rule XI of the Implementing Rules of the
Code, the Regional Branches of the National Conciliation and Mediation Board are
enjoined, in case issues arising from the interpretation or implementation of the
collective bargaining agreements or those arising from the interpretation or enforcement
of Company personnel policies are raised in notices of strikes or lockouts or requests
for preventive mediation, to advise the parties to submit the issue/s to voluntary
arbitration.

WHAT USUAL PROVISIONS OF A COLLECTIVE BARGAINING AGREEMENT

WHOSE VIOLATTION/S ARISING FROM INTERPRETATION AND
IMPLEMENTATION, MAY CONSTITUTE GRIEVANCE/S OR THE SO-CALLED
RIGHTS DISPUTES?

Every collective agreement usually contains non-economic and economic provisions.

Non-economic provisions are those whose monetary cost can not be directly computed
such as no-strike-no-lockout, union security, management security, check-off clauses,
grievance procedures, etc. Economic provisions, on the other hand, are those which
have direct and measurable monetary cost consequences such as wage rates, paid
vacations, pensions, health and welfare plans, penalty premiums and other fringe
benefits. Any violation arising from rights established under collective agreements, laws,
rules and regulations and customary practices may constitute as grievance and is often
referred to as rights dispute.

WHAT ARE PERSONNEL POLICIES AND WHAT ARE THE MATTERS USUALLY
COVERED BY SUCH POLICIES, WHOSE WRONG FROM ENFORCEMENT AND
INTERPRETATION MAY CONSTITUTE GRIEVANCE/S OR OTHER SOURCES OF
RIGHTS DISPUTE

Personnel policies are guiding principles stated in broad, long-range terms that express
the philosophy or beliefs of an organization’s top authority regarding personnel matter.

They deal with matters affecting efficiency and well being of employees and include,
among others, the procedures in the administration of wages, benefits, promotions,
transfers and other personnel movements which are usually not spelled out in the
collective agreement. The usual source of grievances , however, is the rules and
regulations governing disciplinary actions.
WHAT VIOLATIONS OF THE USUAL NORMS OF PERSONNEL OR BEHAVIOR OF
EMPLOYEES MAY CONSTITUTE GRIEVANCES OFTEN REFERRED TO AS
DISCIPLINE CASES?

Rules and regulations governing personnel discipline may contain the following
infractions covering the following subjects:

o AGAINST PERSON
o PHYSICAL INJURY, ASSAULT, HOMICIDE, MURDER
o AGAINST PROPERTY
o MIS-USE OF PROPERTY
o DAMAGE TO PROPERTY
o THEFT AND ROBBERY
o NEGLIGENCE IN THE USE OF PROPERTY
o ORDERLINESS/GOOD CONDUCT
o FIGHTING/QUARRELING
o VIOLATION OF RULES
o DISCOURTESY/DISRESPECT
o INTOXICATION WHILE AT WORK
o POSSESSION OF DRUGS/NARCOTICS/ALCOHOL DRINKS
o ILLEGAL STRIKE
o STRIKE VIOLATIONS/SABOTAGE
o FAILURE TO COOPERATE IN INVESTIGATIONS
o HYGIENE
o SAFETY
o UNION ACTIVITY
o MOONLIGHTING
o DEPORTMENT
o FINANCIAL INTEREST
o UNAUTHORIZED OUTSIDE WORK
o PERSONAL AFFAIRS
o ENTERTAINMENT OF VISITORS
o DISORDERLINESS, HORSEPLAY
o USE OF FOUL LANGUAGE
o ATTENDANCE AND PUNCTUALITY
o TIMEKEEPING VIOLATIONS
o ABSENTEEISM
o TARDINESS
o AWOL
o MORALITY
o IMMORALITY
o SEXUAL HARASSMENT
o CONFLICT OF INTEREST
o CONFLICT OF INTEREST
o NON-PERFORMANCE
o INSUBORDINATION
o NEGLIGENCE OF DUTY
o INEFFICIENCY
o MALINGERING
o CARELESSNESS
o POOR QUALITY